Apple is facing some serious problems with regards to selling the iPad in China. It’s not due to a lack of stock, or even a lack of interest in the tablet. The issue is the name iPad, and a Chinese company’s claim to it.

The problems started last year when Proview Technology claimed ownership of the trademark for the name iPad in China. Proview took Apple to court and has now apparently won the case, deeming all iPads illegal in China effectively.

The knock on effect of that is the Chinese Administrators of Industry and Commerce (AIC) department is now actively seizing the tablets. Stores are being visited by AIC representatives and any iPad stock is confiscated. This has led to stock being hidden from view and sales continuing, albeit it on the hush.

Apple is expected to appeal the decision of the court, though. The problem being, this is a U.S. company against a Chinese company in a Chinese court, so the odds aren’t great Apple can win. The trademark infringement also doesn’t seem to be Apple’s fault, as they purchased the name rights for China in good faith. It’s actually Proview Taiwan who should be on the receiving end of any punishment handed out by the courts.

Apple is now in a difficult position. If its tablet is being confiscated, does it risk shipping any more stock to stores? Sales are still happening, but there’s now a risk that the Chinese government may try and go to the source and seize shipments before they get to retailers.